Lula wins Brazil's presidential election in surprise victory

Incumbent President Luiz Inácio Lula da Silva won a new term in Brazil's presidential election on Sunday, according to the national electoral court, a surprise result as polls had favored his rival, right-wing senator Flavio Bolsonaro. Lula, a left-wing figure who has already served three terms as president, defeated the son of former far-right President Jair Bolsonaro in the runoff. Flavio Bolsonaro had led the first round with 47% of the vote against Lula's 45%. Higher-than-expected voter turnout reportedly favored Lula, who campaigned on his record of low unemployment, illiteracy, and deforestation during his previous term. Lula's fourth term may prove his most difficult, as Brazil elected its most conservative Congress since re-democratization, with Flavio Bolsonaro's Liberal Party and allies potentially controlling comfortable majorities in both chambers. He also faces an economy projected to grow only 2.3% next year, with public debt above 82% of GDP, prompting Goldman Sachs to expect only modest progress on spending controls.